Strategic Economic Development Assessment for The City of Maple Valley, Washington - March 2014
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Strategic Economic
Development Assessment
for
The City of Maple Valley,
Washington
FINAL REPORT
March 2014
734 15th Street NW, Suite 900
Washington, DC 20005Table of Contents
I. Project Overview 3
II. Analysis of Strengths and Challenges 6
A. Capacity Analysis 6
B. Competitiveness Analysis 8
III. Recommendations for Implementation 12
A. Building Capacity for Economic Development 12
1. Make the case for economic development through a comprehensive, ongoing 12
education and communication program.
2. Establish an economic development service model within the city 14
3. Develop a business retention and expansion strategy 15
a. Work with the chamber to define roles regarding business 15
retention and expansion
b. Engage in calls, visits and ongoing relationship-building with 16
businesses
B. Maximizing Employment Opportunities on Available Land 19
1. Prepare and market the North End-Phase One as a regional employment 20
center
a. Revise the zoning code to maximize economic development 22
potential
b. Compile and prepare data to inform a request for proposals 22
c. Take steps to engage a developer 24
d. Utilize incentives 25
2. Position Summit Place now for longer-term potential 25
a. Rebrand the site 26
b. Capitalize on the Regional Learning Center concept 26
c. Partner with educational, workforce and industry to maximize the 27
potential of the programming and land use at the RLC
d. Rezone for maximum economic development benefit 27
3. Preserve the Legacy Site for a future centerpiece project for the community 28
C. Setting the Stage for Long-Term Economic Development Success 30
1. Leverage opportunities and partnerships around workforce development 30
2. Foster small business development and entrepreneurship opportunities 32
3. Plan for redevelopment potential 33
IV. Case Studies 35
A. Making the Case for Economic Development: Best Practices and Case Studies 36
B. Business Retention and Expansion Programs: Best Practices and Case Studies 41
C. Regional Employment Center: Rivulon, Gilbert, Arizona 46
D. Regional Education Center/ Employment Center – Kentucky Transpark, Bowling 48
Green, Kentucky
V. Policy Recommendations 52
Appendix A. Economic Summary of the Community 55
Appendix B. IEDC Expert Team Biographies 64
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 2I. Project Overview
The International Economic Development Council (IEDC) was retained by the City of Maple
Valley to perform a strategic economic development assessment of the community and
opportunities to grow its economic base. The resulting report – this document – will be used to
inform the economic development section of Maple Valley’s comprehensive plan update, which
will be completed in 2014.
The strategic assessment process for Maple Valley centered on a three-day site visit that took
place on Nov. 20-22, 2013. An IEDC expert panel, comprising three practitioner /consultants
with relevant expertise, plus two IEDC staff, visited the community to gather information via a
tour and a series of stakeholder meetings.1 The panel reviewed a report of background
information on Maple Valley, prepared by IEDC staff, in advance of the visit to become familiar
with the community’s key issues. The team members included:
Daniel C. Henderson, CEcD, Real Estate and Economic Development Director, Town of
Gilbert, Arizona
Allison Larsen, CEcD, Principal, TadZo
Leland Smith, President, Elesco Ltd.
Louise Anderson, Senior Associate, IEDC
Frankie Clogston, consultant to IEDC
At the close of the site visit, the panel presented its preliminary conclusions and
recommendations to city staff members David Johnston (city manager), Steve Clark (public
works & community development director), and Matt Torpey (senior planner).
Since then, IEDC staff, with input from the expert panel, prepared this report of recommended
strategies, case studies and policy actions. This report builds on the conclusions presented at the
close of the site visit to propose actions, provide specific tools and resources, and identify roles
for partnering entities that will improve the effectiveness of the city’s economic development
efforts.
1 In addition to the stakeholders with whom the team met during its visit, additional phone interviews
were conducted with the following: Jeanie Ashe, Business Services Division, Washington State
Department of Commerce; Peter Cavanaugh, Workforce Development Council of Seattle -King
County; Ray Moser, Office of the King County Executive; Sarah Lee, Puget Sound Regional
Council; Jeff Marcell President & CEO, Economic Development Council of Seattle-King County;
Mike Maryanski, Superintendent, Tahoma School District; Liz Underwood-Bultmann, Puget
Sound Regional Council; Anneliese Vance-Sherman, Ph.D., Regional labor economist,
Employment Security Department, Washington State; Sue VanRuff, Executive Director, Maple
Valley-Black Diamond Chamber of Commerce; Jaclyn Woodson, Business Services Division,
Washington State Department of Commerce.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 3Background
Since its incorporation in 1997, Maple Valley’s growth has been driven by its attractiveness as a
bedroom community for the greater Seattle and King County region. The city’s jobs-housing
ratio is low, which is reflected in its tax base: 80 percent of revenues derive from residential
taxes and 20 percent from commercial sources. Commuting patterns also reflect the low jobs-
housing ratio, with an estimated 60 percent of residents leaving the city every day to go to work.
Elected officials, city staff and volunteers on the city’s Economic Development Committee have
recognized the importance of bringing new, higher-skill jobs to the city. The Fred Meyer
development that opened in 2011 is an important new source of revenue and jobs for the city,
but the jobs are at a lower wage level. City stakeholders who met with the IEDC panel expressed
interest in attracting high-technology, corporate or light manufacturing uses that provide
“family-wage” jobs, ideally located on some of the city’s larger vacant parcels.
In addition to a desire for more family-wage jobs, a more diversified tax base is a pressing need
because Maple Valley is approaching residential build-out. Though the city went through a real
estate boom that increased housing stock roughly 40 percent from 2000 to 2010, the recent
recession and the shortage of available land for additional housing means that future revenue
growth will have to come from other sources. City Manager David Johnston spoke to the IEDC
panel about the city’s approaching “fiscal cliff,” in which it will not meet the required reserve
ratio for its funds if it continues to spend and generate revenue revenues at current levels. It
needs to generate new forms of revenue outside the residential tax base.
At the same time, city leaders and residents value Maple Valley’s high quality of life, and
therefore seek job growth that preserves and reinforces its brand as an attractive community
for both residents and businesses in the region.
What follows in this report
This report is organized into four principle sections. The section following this overview provides
an analysis of the city’s strengths and challenges in the form of a SWOT analysis (strengths,
weaknesses, opportunities and threats) in the areas of capacity and competitiveness.
The third section presents detailed recommendations for implementation organized into three
broad areas:
A. Building capacity for economic development,
B. Maximizing employment opportunities on available land, and
C. Setting the stage for long-term economic development success.
The fourth section of the report provides best practices and case studies of projects and
initiatives from other communities that are relevant to Maple Valley. Case studies address
capacity-building and communication initiatives, business retention and expansion programs,
the development of an office park and the establishment of a regional learning center.
The fifth section of the report presents policy recommendations that the city can use as a basis
for drafting the economic development component of its Comprehensive Plan update. These
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 4policy recommendations are based on the SWOT analysis and the detailed implementation recommendations. They are presented in a format comparable to the economic development sections of the comprehensive plans of Renton, Kent, Covington and Auburn, which the IEDC team reviewed by way of background. Appendix A summarizes key demographic and economic characteristics of the city, which also are key elements of the city’s Comprehensive Plan update. Appendix B provides biographies for the IEDC panel. Final Report IEDC Economic Development Assessment: Maple Valley, Washington 5
II. Analysis of Strengths and Challenges
The following section analyzes the strengths and challenges to economic development in Maple
Valley, focusing first on capacity and second on competitiveness.
A. Capacity Analysis
Strengths Weaknesses
• Change in city council orientation • Reactive economic development
toward economic development approach
• Economic development background of • No economic development staff/ ED
city manager point of contact
• Engagement of private sector with • No program of work
Economic Development Committee
(EDC)
Opportunities Threats
• Untapped regional partners • Stronger economic development
• More defined alignment with the organizations in other communities
chamber of commerce • Political risk
• Expanded contributions of EDC • Fiscal cliff
• Growth opponents
Strengths
Change in city council orientation toward economic development. In the last five years,
Maple Valley’s city council has been more active in prioritizing economic development
for the city. Ushered in by changes in composition in 2008 and 2010, the council has
made decisions that have helped facilitate economic development, including passing an
ordinance in 2009 to increase the maximum allowable square foot for a building from
60,000 (dating back to 1997) to 200,000 square feet, paving the way for Fred Meyer. In
a process that moved quickly over about six months, the council also approved the
rezoning of the majority of the Brandt and gravel pit areas to Service Commercial (SC) to
allow for industrial and commercial development.
Economic development background of city manager. Since he joined Maple Valley as
city manager in 2009, David Johnston has drawn on the background he gained while
managing municipalities in Illinois and Indiana to bring economic development issues to
the fore in Maple Valley. He created a new Economic Development Committee and is
taking steps to diversify the city’s fiscal base by seeking to development vacant parcels,
as appropriate, to develop employment centers in the city.
Engagement of private sector with Economic Development Committee (EDC). Since its
creation in 2011, the Economic Development Committee has become an important
resource for the city. Its members are rooted in the community and region and
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 6contribute a wide range of private- and public-sector background and expertise.
Members have a strong grasp of economic development issues as evidenced in their
February 2012 recommendations to the city council. This group can continue to play a
role in supporting community and economic development initiatives in Maple Valley.
Weaknesses
Reactive economic development approach. In the past, the city been perceived more as
being “open to business” than “open for business.” The experience of the Fred Meyer
development that took several years to bring to fruition is a case in point. With the
development, the city experienced a learning curve in terms of facilitating the attraction
and development of a new business, from land use changes to permitting and other
facets of service delivery.
No economic development staff/ point of contact. Maple Valley is a small municipality
and budget constraints will likely prevent it from having a full-time economic
development staff person in the near future. Improvements can be made by
establishing a single point of contact for existing businesses and new prospects who
walk into city hall, as well in determining the city’s follow-up approach.
No program of work. Though the city has taken steps to focus on economic
development, it does not have a specific program of work in place.
Opportunities
Untapped regional partners. Many entities in the region can become stronger partners
with Maple Valley as it embarks on its economic development efforts, including, most
notably, the Economic Development Council of Seattle and King County, the Puget
Sound Regional Council, and the community of real estate developers in the region.
There is a lack of awareness among these partners about the city’s change in orientation
toward economic development and its vacant parcels for industrial development.
Additional partners are discussed further on in this report.
More defined alignment with the chamber of commerce. The Maple Valley-Black
Diamond Chamber of Commerce performs a valuable service to Maple Valley by serving
many local businesses’ needs, especially in the retail sector – including assistance with
permitting and licensing, marketing for the retail industry and lobbying on behalf of the
business community. The city can build upon the chamber’s existing capacity and
networks with better defined and aligned roles for both parties.
Expanded contributions of the EDC. The EDC has members from a wide variety of
private and public backgrounds who can provide expertise in terms of site development,
developer connections, communication with the pubic, business retention and more.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 7Threats
Stronger economic development organizations in other communities. This is a threat
that Maple Valley will continue to face but can mitigate somewhat by making the best of
its existing assets and building its capacity.
Political risk. Community surveys indicate a split opinion among Maple Valley residents
when it comes to economic development.2 Some support growth that prioritizes
employment centers, while others oppose it or are wary of its need in a historically
residential community. This diversity of opinion was evident during the IEDC panel’s
visit, during which some stakeholders described Maple Valley as “rural” and
“residential” while others spoke about its “potential.” Any growth will inevitably be
seen as positive by some and negative by others.
Fiscal cliff. The city council recently increased the reserve requirement for the city from
10 percent to 16.7 percent. Based on current cash flow projections, by 2017, the city will
no longer meet the required fund balance of 16.7 percent if its revenues and
expenditures remain the same. Because the city’s revenue base growth has slowed with
the declining rate of new residential construction, new sources of revenue are needed.
Growth opponents. Some residents resisted changes to the zoning code for properties
in the North End. Growth opponents are likely to be a vocal force when specific
proposals are on the table and development ensues in the North End, and may be as
well when zoning changes and developments are proposed with regard to Summit
Place.
B. Competitiveness Analysis
Strengths Weaknesses
• Available land • “Outer ring” location
• Fiber capacity • Traffic congestion
• Proximity to international airport • No building inventory
• High city bond rating • Lack of site readiness
• Regional growth • Lack of business case for the city
• Location out of flood plain • Brand/reputation
• Lower-cost location
Opportunities Threats
• Regional education center • Increasing traffic congestion
• Regional workforce draw • Competitor communities
• Strong developer market
• Underutilized zoning
2
Herbert Research, Inc. (May 12, 2012). City of Maple Valley Community Survey 2012 Executive Summary.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 8Strengths
Available land. Maple Valley has a critical mass of vacant property that could come
online for development in the near future. This is a major strength for the city, as
sizeable, industrial-zoned vacant parcels are rare in King County. At the top of the IEDC
panel’s list for development potential is the 35-acre, commercially/industrially zoned
portion of the Brandt property at the “North End” site (totaling over 100 acres). The
154-acre “Summit Place” site will have a new high school/ Regional Learning Center on
35 acres, while commercial and industrial uses could follow on much of the balance of
the property. The 50-acre Legacy site, owned outright by the city, has potential for a mix
of public and private uses further down the line.
Fiber capacity. The city has two fiber lines operated by Integra Telecom and Century
Link that are currently not being utilized. Both of these offer sufficient capacity to meet
the computing needs of technology companies.
Proximity to international airport. Maple Valley is 20 miles from Seattle-Tacoma
International Airport.
High city bond rating. The city’s AA+ bond rating is strong signal for investors.
Regional growth. Recent figures from the U.S. Bureau of Labor Statistics show that King
County has recovered faster from the recession than both the state of Washington and
the United States. As identified by the Economic Development Council of Seattle-King
County, the region has strong economic performance in sectors that include aerospace,
clean tech, financial services, interactive media, life science, international trade and
technology.
Location out of the Green and Cedar River flood plains. Relative to other neighboring
cities in the region, Maple Valley has an advantage by being located outside of both the
Green and Cedar River flood plains, which reduces insurance rates (according to Herbert
and Associates).3
Lower-cost location. Because it is located farther from the major metro centers of
Seattle and Tacoma, Maple Valley can offer greater cost competitiveness for land and
associated development compared to other communities in the Puget Sound Region (an
“undiscovered bargain”).
Weaknesses
“Outer ring” location. Maple Valley is located roughly 30 minutes from both Seattle
and Tacoma, at the edge of the county’s urban growth boundary and the foothills of the
Cascade Mountains. The city’s setting is picturesque, but its “outer ring” location is a
detractor for businesses that want to be closer to the Seattle city center, I-95, Sea-Tac or
3
Jim Herbert, Hebert Research Inc., personal communication, Nov. 22, 2013.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 9other such assets. For these reasons, the city must document a stronger business case in
comparison to many competitor communities.
Transportation. The city is located on State Highway 169, a two-lane state highway that
becomes congested with commuters. The city lacks direct access to Interstates 5 and 90,
although the SR 18/SR 169 interchange is located halfway between them.
No building inventory. While there are a few vacant retail buildings in the Four Corners
area and other parts of the city, there are no vacant flex-tech, manufacturing or large-
scale office buildings available for new or expanding businesses.
Lack of site readiness. While Maple Valley has vacant sites, they currently are not fully
ready to be successfully marketed. Detailed site documentation is needed, and a data
package needs to be assembled that provides all the information a developer would
need to take on a project.
No business case for Maple Valley. Documentation of the assets that prove Maple
Valley is a choice location for business needs to be assembled. A business case is more
than a marketing tool; it demonstrates that the city understands the needs of business
and can address those needs. While quality of life is valuable for residents, factors such
as labor draw, site readiness, and other variables are critical in the decision-making
process of a developer or business (end user) and need to be identified and supported
with data. The business case should be written in specific terms relevant to business,
rather than a marketing brochure.
Brand/reputation. Historically, Maple Valley has been perceived not particularly friendly
to development, due in part to a slow permitting process and regulations limiting size
and height of buildings. It also has a strong brand as a residential community, which
comes with advantages and disadvantages. It highlights Maple Valley’s strengths in
quality of life, including schools, recreation and natural beauty, but it detracts from its
identity as a place where developers would build employment centers or where primary
employers would locate.
Opportunities
Regional education center. The bond measure paving the way for the new high school
to be built on the Donut Hole/Summit Place property is an exciting beginning to a
planned multi-institutional Regional Education Center. The center will occupy 35 acres
of the154-acre site, leaving space for businesses to locate adjacent. Synergies between
educational institutions and business could come in the form of a workforce pipeline of
graduates, apprenticeship and learning opportunities, and worker training programs.
Additionally, current discussions about the curriculum and design of the Regional
Learning Center can bring together a range of partners that will be important to Maple
Valley moving forward, including workforce development, industry associations, major
area companies and business development interests.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 10 Workforce draw. Anecdotal assessments of the Maple Valley workforce indicate a
talented pool of workers in professional services, technology and other high-skill
industries. These workers commute to Microsoft, Boeing and other major (and minor)
companies across the region. Maple Valley has access to its own pool of skilled workers
as well as those available throughout the regional laborshed, a compelling draw for new
employers.
Strong developer market. King County and the four-county region has a strong market
of developers with whom Maple Valley can build relationships.
Underutilized zoning. Zoning changes can be made to ensure that sites of future
employment centers are restricted to uses that produce family-wage jobs. Zoning
changes also can be made to encourage greater mixed uses and employment generation
on existing inventory.
Threats
Increasing traffic congestion. SR 169 is already a major source of congestion through
the area, and further development in Black Diamond and from other uses will
exacerbate the traffic. Some changes undertaken by the city to improve traffic flow of
SR 169 in the Four Corners area will improve this, but traffic problems related to 169 are
largely an exogenous issue.
Competitor communities. Competitor communities include Black Diamond to the south
that has a master plan for a mixed-use development that could include 6,000 to 8,000
residential units and 1 million square feet of commercial space. Other neighboring
communities in south King County also are trying to attract economic-base businesses
and some are pursuing economic development niches in particular sectors.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 11III. Recommendations for Implementation
The following recommendations are organized under three themes:
A. Building capacity for economic development,
B. Maximizing employment opportunities on available land, and
C. Setting the stage for long-term economic development success.
Maple Valley is in a good position to begin focusing on economic development. As it does so,
however, it should be mindful of the critical role that partnerships will play as it proceeds. The
city’s small size and limited staff capacity, as well as its location in a competitive, multi-city
metropolitan region, mean that Maple Valley will need to focus externally in a way that it has
not in the past. Cultivating partnerships with a range of groups in the region will be key to
maximizing its capacity.
The city already has working relationships with many of the partners that the IEDC team sees as
critical moving forward. However, some partnerships will be new, and the nature of existing
partnerships with other entities will change. Those key partners are:
The city’s Economic Development Committee
The Maple Valley-Black Diamond Chamber of Commerce
The Economic Development Council of Seattle and King County
The Puget Sound Regional Council
The Workforce Development Council of Seattle-King County
King County
State of Washington
Each of these partnerships will be discussed in greater detail below according to function.
A. Building Capacity for Economic Development
1. Make the case for economic development through a comprehensive, ongoing
education and communication program.
Having been a rural community just 20 years ago and then growing into a bedroom community,
Maple Valley’s new focus on economic development may be somewhat surprising to many of its
residents.
To gain support for these efforts and keep citizens informed, the city has an important role to
play in helping them understand why focusing the city’s time and resources on economic
development is necessary. At the same time, it will be critical also to provide reassurance that
economic development can be achieved in Maple Valley without comprising the high quality of
life that residents rightly prize. This communication and education will be especially important
over the next year during the comprehensive planning process and as the city seeks to attract
economic-base employers to undeveloped parcels.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 12Key messages around shifting to an economic development focus can be shaped around
averting the “fiscal cliff.” This is a compelling concept that, reiterated in multiple ways through
multiple venues, stakeholders and communication vehicles, should resonate with city residents
and businesses. No one likes the idea of reduced services or higher taxes, and city leadership
should be commended for being proactive and taking actions with a long-term view.
Themes that tie into the fiscal cliff conversation include:
How the city’s revenue base is changing. Part of the discussion of the “fiscal cliff”
involves educating residents about the way that growth in city services has been funded
in the past – through residential/building permit growth – and the options for growing
the revenue base in the absence of continued housing development. City Manager
David Johnston noted during a meeting with the IEDC team his goal of reducing the
city’s tax base from 80 percent residential to 60 percent.
This would include, for example, education on how economic development works (e.g.,
“The Flow of Money”); the difference between “economic base” or “primary” employers
and local-serving businesses, and the multiplier effect.4 These concepts can be simplified
and reiterated as part of a public outreach program.
Job growth will benefit residents and local businesses, not just city coffers. The possibility
of increasing living-wage jobs in Maple Valley brings with it the possibility of increased
daytime activity and population to patronize local businesses. It also brings with it the
possibility that some resident no longer will have to commute 20, 30, 60 minutes or
more each way to a good job.
The limited supply of available land. Because there is no way for the city to expand
geographically, the remaining large tracts need to be preserved for job growth.
Improving options for eventual development of the Legacy site. Economic development
and improved city revenues will allow for more flexibility (and perhaps ambition) in the
eventual planning and development of the Legacy site.
There are multiple avenues the city can use to transmit these messages. Elected officials and the
city’s Economic Development Committee likely will be the most credible and influential
ambassadors. They can assist in educating and communicating with residents through city
council meetings, attendance at service clubs and similar civic and association functions and
other methods, including use of traditional and social media. Both in manner and content,
communication with residents and businesses should be transparent and timely.
Cultivating positive working relationships with local and regional journalists can help ensure that
key initiatives are covered in the media. Key players in economic development (e.g., the city
4
The multiplier effect occurs when an increase in employment in an export (or economic base or primary)
industry leads to an increase in employment in non-export (secondary) industry. In other words, increased
export industry activity increases the dollars circulating in the local economy, which then increases
demand for the products and services provided by non-export industries. Source: IEDC Economic
Development Planning manual.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 13manager, mayor or chair of the Economic Development Committee) could consider writing a
weekly, regular or even occasional column in the Maple Valley Recorder and/or other local
publications. The city also should develop a social media presence.
In terms of communicating with existing businesses, the city has an opportunity to provide
assurance that it values them and that non-retail businesses growth will complement, rather
than compete, with the existing base. The growth of new businesses in Maple Valley will
generate new revenues, decreasing the prospect of tax increases for existing businesses and
residents. Furthermore, by virtue of a multiplier effect, new businesses may create new markets
for existing businesses. Technology, office and industrial development will employ a high density
of workers per square foot that will increase the daytime population and support existing retail
businesses, as well as spur demand for new retail businesses (e.g., cafes and business services).
Examples of similar communication programs and the principles that underlie them are included
among the case studies in section IV of this report.
Partner Spotlight: Maple Valley Economic Development Committee
The 18-member Economic Development Committee (EDC), created in 2011 by the city
manager, is a valuable group of stakeholders who have knowledge of the city and of
economic development, and have been effective in recommending and pushing for such
initiatives in the community.
The EDC has public-sector members from utilities and the school district, nonprofit
members from the chamber of commerce and the Center for Advanced Manufacturing-
Puget Sound, and private-sector members involved in real estate, environmental
engineering and other industries. In short, the committee represents the spread of
interests necessary to guide and further economic development in the city.
The IEDC team believes that the EDC can continue to play an important role moving
forward. The group can be useful in outreach and communication efforts around “making
the case” for economic development (discussed above), participating in business visits as
part of a business retention program, outreach to developers and new business prospects
in the city, and participating in discussions to shape the development of the new Regional
Education Center (all discussed below).
2. Establish an economic development service model within the city.
Maple Valley is a small municipality and budget constraints may prevent it from hiring a full-
time economic development staff person in the near term. However, as it prepares to market its
larger properties for development, it will be important for the city to have a single point of
contact for developers, expanding businesses or new prospects who walk through the doors of
city hall.
Beyond establishing an initial point of contact, a team approach for follow-up on specific issues
with individual businesses is necessary. Timely, efficient, and responsive follow-up is crucial to
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 14strengthen the city’s claim of readiness and commitment to business. For example, such a team
may include the city manager, planning director and public works director, with other city
employees assisting on an ad hoc basis when necessary.
Although the city needs to organize an internal service model, it is important to also remember
that economic development is a team sport. In other words, the city’s role is to facilitate
resources for businesses that are both internal to the city and those that involve external
resource partners. Common partners for a city’s economic development team include service
providers such as public and private workforce agencies, utilities, financing, etc. The city’s
economic development team should meet regularly to share updates on projects, general
economic issues, new resource offerings and services, and other specific inquiries.
3. Develop a business retention and expansion strategy.
Because 70 to 80 percent of all job creation reportedly comes from existing companies, business
retention and expansion (BRE) is considered the bedrock of an effective economic development
program. At its most effective, business retention is a customer satisfaction program designed
to gain intimate knowledge of local businesses and their industries, as well as to provide
seamless service to address problems businesses face as they operate in a community. Business
retention is also about building long-term relationships.
Another advantage of participating in a business retention and outreach program is the
opportunity it provides the city to deliver the message about the benefits that economic
development can bring to new and existing businesses. From conversations with the IEDC panel,
it seems that many Maple Valley businesses understand this advantage and support the idea of
bringing more jobs to the community. It will be important that the city stress in its
communication with business that its economic development focus does not mean a tradeoff to
the detriment of existing businesses, or between retail businesses and other
commercial/industrial businesses.
a. Work with the chamber to define roles regarding business retention and expansion.
The Maple Valley-Black Diamond Chamber of Commerce already engages in many business
retention and expansion activities. It serves as the “welcome wagon” for new businesses, refers
businesses to service providers, provides networking opportunities, and advocates for business
interests. It is the one with the information at its fingertips regarding inventory for businesses
inquiring about locating or expanding in the city, and it helps existing businesses navigate the
city process of inspections, licenses, fees and other needs. By virtue of its existing work, the
chamber will continue to play an important role in business retention.
However, a formal business retention program goes further, with regular calls and visits to
businesses. The IEDC recommends that the city (perhaps in partnership with volunteers from its
Economic Development Committee) begin a program of identifying and calling on non-
retail/primary/economic base firms that provide family-wage jobs and have the potential to
grow in Maple Valley. The chamber would remain responsible for business retention activities
that involve retail and local-serving businesses.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 15Such a program will help the city better understand its business community and build
relationships that can lead to firm growth and to the possible location of employers at the new
sites it plans to develop as employment centers.
Although the chamber currently plays an important role in BRE and will continue to do so, the
city needs to be a participant in the process, and the division of responsibilities needs to be
formalized so that the partners know their role and businesses know where to go for assistance.
b. Engage in calls, visits and ongoing relationship-building with local businesses.
Developing relationships and a continual dialogue with existing businesses is where a BRE
program begins. The IEDC panel recommends that the city’s BRE program include calls, visits and
ongoing relationship-building. One way the city can overcome its limited staff capacity for such
activities is by having volunteers assist – a common approach in many communities – which
could be a role for the Economic Development Committee.
A calling program can help the city identify issues facing businesses that are hampering their
growth or may influence them to close or leave. It can also help the city and EDC gain knowledge
of potential growth firms that currently fly under the radar and that, connected to the right
resources, could grow and employ more Maple Valley residents with family-wage jobs.
More discussion of the tenets of a successful BRE program, along with case examples, is
included in the case study section of this report (section IV).
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 16Regional Partner Spotlight:
The Economic Development Council of Seattle and King County
The Economic Development Council of Seattle and King County (EDC-SKC) is a
public-private partnership focused on economic development for King County and its 39
cities. One of the council’s primary functions is to “provide confidential consulting
services free of charge to businesses seeking to relocate, grow, or establish themselves in
Seattle and King County.”
Through interviews as part of this process, it emerged that the EDC-SKC has been
insufficiently aware in the recent past of some of the large, vacant parcels that Maple
Valley can offer to newly locating businesses. This is due partially to the fact that the
parcels may comprise several contiguous lots (in the case of the North End) and not turn
up in real estate search engine results, or that the property has just become available
under the city’s jurisdiction (as in the case of Summit Place). It is crucial that the city
stay in regular contact with EDC-SKC to update it on available land and building
inventory options for new businesses seeking to locate in King County.
Additionally, the city should engage EDC-SKC to tour the properties and become
acquainted with their location, infrastructure, and other characteristics so that the council
can better inform prospects. The city has taken steps in the past few months to coordinate
with the EDC-SKC to update Maple Valley’s information on its website to reflect current
data and vacant land opportunities. Because there are few undeveloped, industrially
zoned parcels in King County, this kind of update is crucial so that Maple Valley is
visible with current information.
The city should ensure that all its strategic partners have updated information about
Maple Valley, including baseline data and information on development prospects for
their websites, marketing materials and general knowledge base, especially those
strategic partners that may represent the city in any capacity to the developer community.
The EDC is also a valuable source of information for strategic planning in economic
development. The EDC has targeted eight industry clusters: aerospace, clean tech,
financial services, interactive media, life sciences, international trade, technology and
fashion. The organization also provides a valuable data bank on doing business in
Washington, economic basics, key industries and forecasts. If and when Maple Valley
targets a niche industry or cluster, it should consult EDC-SKC (as well as the Puget
Sound Regional Council) for information on industry clusters in the county and region.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 17Regional Partner Spotlight:
Puget Sound Regional Council
The Puget Sound Regional Council (PSRC) represents the four-county region of King,
Pierce, Snohomish and Kitsap County with the mission of ensuring a thriving region
through planning for regional transportation, growth management and economic
development. The city should tap into the resources of the PSRC for technical assistance,
data and research, transportation funding, and possible participation in programs such as
its regional growth center program.
The time is ripe for Maple Valley to engage with PSRC. Its new director, Josh Brown, is
interested in meeting all members in the region, including smaller members. Maple Valley
mayor Bill Allison initiated a relationship with the previous director, Bob Drewell, who
was in touch with PSRC’s economic development arm about Maple Valley after the
director toured the city with the mayor. Now that a new director, Josh Brown, is at the
helm of PSRC, the city should reengage with the council.
There are multiple benefits to engagement with PSRC. It is the metropolitan planning
organization for the four-county region charged with disbursing federal transportation
funds. Among other criteria, disbursement is based on the “regional good” – i.e.,
transportation improvements that benefit not just one jurisdiction but also the region as a
whole. Some of Maple Valley’s transportation projects, especially related to state
highways SR 169 and SR 9 (and in conjunction with a new regional employment center
and regional education center) could meet this criterion. Becoming more familiar to PSRC
can only help Maple Valley with its requests for transportation funding.
Maple Valley also can avail itself of PSRC’s repository of data and information and its
technical assistance. PSRC will conduct custom data searches upon request and maintains
a wealth of information about industry clusters. It also offers technical assistance,
including with review of a community’s draft comprehensive plan ahead of certification of
the plan.
While Maple Valley may not be eligible for designation by PSRC as a regional growth
center or regional manufacturing/industrial center in the short term, it can examine the
criteria and consider applying for designation as a regional growth center when conditions
are ripe. Currently, 27 cities and neighborhoods are designated as regional growth centers,
while eight areas are designated regional manufacturing/industrial centers. The regional
growth centers have criteria including a focus on high density and planning for a city
center, something Maple Valley could achieve in the future. (Manufacturing/ industrial
centers are applicable to communities with a minimum of 10,000 manufacturing jobs and
therefore would not apply to the city.) Designation as a center gives a city more “points”
when it comes to receiving regional funding, and PSRC also works with these centers to
develop and implement their plans.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 18B. Maximizing Employment Opportunities on Available Land
The availability of large parcels of land for potential industrial development is a distinct
advantage Maple Valley has over other communities in King County. However, among the three
major sites the IEDC team reviewed – the North End (Brandt/gravel pit property), Summit Place
(Donut Hole) and the Legacy site – each has varying advantages and limitations for development
(discussed in more detail below). Therefore, the IEDC team recommends that the city prioritize
development of the sites in the following order:
1. North End – Phase One (Brandt property)5
2. Summit Place
3. Legacy site
The team recommends that the city approach projects sequentially for several reasons. First, the
city will be beginning its first major economic development project with limited staff,
organizational capacity, and experience with such projects. Sequencing also will have the benefit
of building both capacity and momentum for development among developers, residents and
potential end users. The success of one project breaking ground and generating jobs will
increase the likelihood of success for future projects.
The Brandt property on the North End is best situated for light industrial, technology-based or
office campus development. It has the best access to state roads of the three sites, zoning that
will provide for industrial use, environmental and other analyses completed, and its owner is
motivated to sell. Not only does it have the greatest potential but it is the readiest for execution
of the three.
Regarding Summit Place, appraisals by both King County and developers (completed as recently
as 2013) have indicated that the highest and best use for the site was residential/mixed-use.
(The name “Summit Place” actually came from a proposal by the developer YarrowBay for a
master-planned development with more than 1,600 residences along with some retail and
commercial uses.) However, more residential does not fit with the city’s aspiration to increase
its jobs to housing ratio.
The appraisals do not mean that technology-based, office or light industrial development is not
possible on the site; however, the city will need to work, over time, to position the site for
employment-generating uses. Success with the development of the North End site, increased
capacity for economic development at the city, improved perception of city interest in economic
development, stronger and more robust partnerships, and the development of the Regional
Education Center (high school and community college) all will help build interest and feasibility
in Summit Place for employment-generating uses. In other words, the North End site has the
best potential, if properly packaged and managed by the right developer, to catalyze high-level
employment opportunities at Summit Place and elsewhere in the city.
5
The timing of Phase Two of the North End – the development of the gravel pit – depends on a number of
variables, owner interest first and foremost.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 191. Prepare and market the North End-Phase One as a regional employment center.
The North End is comprised of the 51-acre “Brandt property” (named for the family that owns
the land), the 60-acre J.R. Hayes Gravel Pit property, and smaller residential lots adjacent to the
Brandt property and gravel pit, owned by Jim Flynn. The properties are located at the northern
end of the city near the intersection of SR 169 and SE 240th Way, extending northwest to the
east of SR 169.
The IEDC team recommends that the city focus its initial efforts on working with the owners of
the Brandt property to develop that site as an independent project, referred to here as Phase
One of the North End.
North End Phases
At a later time, the gravel pit property owned by J.R.
Hayes may become available. That, along with Phase 1
additional infrastructure, would constitute Phase Two Brandt Property – 35 acres
of the North End. However, it will be at least one to
two years before the pit is filled in, and the owner has Phase 2
not yet taken steps to market the property for sale. Gravel Pit – 60 acres
Connecting Road from SR 18
Consistent with approaching North End in discrete
phases, the city should not concern itself with the infrastructure affecting the entire North End –
namely, a connector road to SR 18 – at the outset. The Brandt site has an approach on SR 169
that provides an adequate entrance for a business park.
Key assets of the North End-Phase One property
A number of factors contribute to the property’s position as a priority site for employment
development:
Location. The property is near the intersection of SR 169 and the major artery of Route
18, facilitating traffic flow in and out of the area at the northern edge of the city.
Recent rezoning. The city council recently rezoned 35 acres of the Brandt property and
the entirety of the gravel pit properties as Service Commercial (SC). The rest of the
Brandt property is zoned Community Business (9.86 acres) to allow for retail along SR
169 and parks, recreation and open space (5.8 acres).
The rezoning allows for development in line with goals for economic development
growth “that recognizes the retail opportunities of SR 169 frontage and advanced
technology/manufacturing to be consistent with SC zoning of North Sub‐area Plan—
sensitive to the residential neighborhoods to the east.”6 It also included changes to
height requirements allowing for 80- to 100-foot building heights. (The residential
parcels are zoned R-6.)
6
City of Maple Valley, Washington, Ordinance No. O-12-523.
http://www.maplevalleywa.gov/home/showdocument?id=5501
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 20 Access to a world-class talent pool. The site can draw highly-skilled workers from the
regional laborshed, which includes much of King County as well as parts of Pierce
County to the south. The Brandt property has direct access to State Highway 169 and is
three-quarters of a mile from the State Highway 18 interchange, providing access for
commuters from the north and west, respectively.
Site-specific readiness and qualities. The property has immediate potential for
development. In addition to the SC zoning, water and sewer are available at the site,
and documentation confirms no wetlands or endangered species present. The wooded
area of this site would provide an attractive setting for a business park campus. Adding
to the appeal, it should be possible to have a view of Mt. Rainier from a few stories up in
a structure built on the site.
Motivated owners. Owners of the Brandt Property are actively marketing the site.
Recommended approach
The Brandt property is well positioned to develop as a business park/high-tech manufacturing
campus with office space and possibly flex space for businesses in a range of advanced
manufacturing and high-tech industries. Based on a projection from one scenario for a multi-
story office and flex-space park, a Regional Employment Center on the site could offer more
than 600,000 square feet of building space and employ 800 workers.
Regional Employment Center: Projected Land Use and Jobs
(Multi-story/Office and Flex Space Scenario)
Total Building Space: 615,930 SF
Total Jobs: 800
Building space calculation Building uses /jobs calculation
Land use distribution 3-story buildings - 182,952 SF office use at
35 acres @ 80% usable for building = about 600 sq. ft. per employee = 310
28 net acres = 1,220,000 sq. ft. land. employees-
Balance of 7 acres for roads, common
areas, utility corridors, etc. 2-story buildings - 219,534 SF combination of
offices, R&D, lab space, at about 800 sq. ft.
Building mix – 3, 2 and 1 story buildings per employee = 275 employees-
20% 3-story (5.6 acres) with FAR of
0.75:1 = 182,952 total SF 1-story buildings - 213,444 SF of
30% 2-story (8.4 acres) with FAR of manufacturing, fab, assembly, warehouse,
0.60:1 = 219,534 SF etc. at about 1,000 sq. ft. per employee = 215
50% 1-story (14.0 acres) with FAR of employees
0.35:1 = 213,444 SF
Total building space: 615,930 Total employees = 800
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 21In order to achieve goals of developing the property as an employment center with family-wage
jobs, the IEDC team recommends that the city improve its readiness by modifying the existing
zoning at the site, compiling the data necessary to engage a developer, and issuing a request for
proposals.
The IEDC team recommends targeting developers, rather than end users, in order to recruit
economic base employers to the North End-Phase One and other property discussed later in this
section. While it is tempting to consider jumping straight into the type of business attraction
activities that are common in economic development, the city does not yet have the capacity
and readiness for such efforts. However, a developer can be a partner with the city to help
market the site and attract quality employers. The right development partner will be motivated
financially to create the kind of quality product that will help it secure a strong anchor tenant(s).
Improving readiness
Maple Valley has begun to change its orientation toward economic development in the last few
years, but it now must focus on specific steps to improve its readiness that match the change in
orientation.
The steps discussed below are included in this section of the North End-Phase One because the
IEDC team believes this property should be the city’s priority for development, as discussed
earlier. However, many of the steps outlined below will apply to later development projects in
the city.
a. Revise the zoning code to maximize economic development potential.
Recent zoning changes to North End properties applying a SC designation allow for commercial
and industrial uses but do not restrict uses to those that generate family-wage jobs (in
alignment with the city’s goals). Retail uses are still a potential outcome for the site.
The city recommends changing its zoning designations on the North End-Phase One site to
preserve it as a site for primary/economic base employers with limited retail. For example, in
some communities, a “business park” zone will allow for limited service businesses and retail
that supports business park tenants but not outside customers (allowing for uses such as coffee
shops, delis and copy shops). The primary purpose is to add convenience, not expand the
market.
b. Compile and prepare data to inform a request for proposals.
Preparing to go to market with a property requires considerable homework. Securing a
developer for a major project is no easy feat, and the numbers have to match up. This section
outlines the documentation the city should compile to make its case to the development
community.
Market analysis. To prepare to work with a developer(s), the city needs to have a market
analysis completed for the North End-Phase One. This analysis should include information
on other comparable building inventory in the region and a brief target industry analysis
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 22describing what types of tenants would be most
attracted to the product. Data from the Puget Components of a market analysis
Sound Regional Council could be used as a base for
estimating business growth and relating that to Non-residential land use map/ land
physical space and other locational determinants. use designations
Average lot and building sizes
Parking ratios
Once a developer signs on to the project, they will
Vacancy rates
conduct more sophisticated market analysis, but
Projected absorption rates for land
the city needs to have baseline information
available at its fingertips to offer to prospects.
Laborshed analysis. Laborshed studies are now part of the package that developers and
prospects expect as part of a city’s marketing materials. The availability of labor is among
the most critical location factors for a business.
The IEDC team believes that Maple Valley’s Components of a workforce /
workforce, as well as the regional laborshed (the laborshed analysis
area from which an employment center draws
commuting workers) is one of the city’s strongest Demarcation of “laborshed” area
selling points. The laborshed analysis will be one of and associated data
the most important resources for motivating a Projected population, age and race
developer because it provides an incentive for Education and income levels
companies to locate in Maple Valley. The analysis Employment by industry type (2-
digit NAICS code)
will provide greater characterization of the
Employment growth projections
occupational skills of the local and regional labor
force. Communities that can document wages,
education, current areas of employment and other characteristics of their workforce have a
competitive advantage over those that rely on anecdotal, outdated or less detailed
information.
At the North End-Phase One site, Maple Valley will be developing a Regional Employment
Center that will draw workers not just from the city but also from the region. The same is
likely to hold true for new businesses at the Summit Place site.
The Washington State Employment Security Department is a good source of labor data for
the city. It will do free or low-cost custom analyses on the workforce in King County, Pierce
County and for specific zip codes and municipalities, and document characteristics including
age, education, SIC and NAICS codes.
Benchmark entitlements and taxes to neighboring competitors. Multiple municipalities in
the area are seeking developers and economic-base employers. In order to compete
successfully, the city needs to be knowledgeable of the impact fees, license fees, taxes and
costs of other entitlements associated with development in surrounding jurisdictions. This is
another area in which the EDC-SKC may be able to provide assistance.
Final Report
IEDC Economic Development Assessment: Maple Valley, Washington 23You can also read
